-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KmILO7gXaW/fYRpZV46XydxJkIQqO8YENLJfDNw0uZNodKz1uDXAD/Ux2vbPwWF0 ry2ga0/o35liIjsYBQAr4g== 0000900092-97-000069.txt : 19970411 0000900092-97-000069.hdr.sgml : 19970411 ACCESSION NUMBER: 0000900092-97-000069 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970228 FILED AS OF DATE: 19970410 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MERRILL LYNCH GLOBAL UTILITY FUND INC CENTRAL INDEX KEY: 0000868452 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-06180 FILM NUMBER: 97578023 BUSINESS ADDRESS: STREET 1: P O BOX 9066 CITY: PRINCETON STATE: NJ ZIP: 08543-9011 BUSINESS PHONE: 6092823319 MAIL ADDRESS: STREET 1: P O BOX 9066 CITY: PRINCETON STATE: NJ ZIP: 08543-9011 N-30B-2 1 QUARTERLY REPORT MERRILL LYNCH GLOBAL UTILITY FUND, INC. FUND LOGO Quarterly Report February 28, 1997 Officers and Directors Arthur Zeikel, President and Director Ronald W. Forbes, Director Cynthia A. Montgomery, Director Charles C. Reilly, Director Kevin A. Ryan, Director Richard R. West, Director Terry K. Glenn, Executive Vice President Norman R. Harvey, Senior Vice President Donald C. Burke, Vice President Walter D. Rogers, Vice President and Portfolio Manager Gerald M. Richard, Treasurer Patrick D. Sweeney, Secretary Custodian The Chase Manhattan Bank 4 MetroTech Center, 18th Floor Brooklyn, NY 11245 Transfer Agent Merrill Lynch Financial Data Services, Inc. 4800 Deer Lake Drive East Jacksonville, FL 32246-6484 (800) 637-3863 This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless accompanied or preceded by the Fund's current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change. Merrill Lynch Global Utility Fund, Inc. Box 9011 Princeton, NJ 08543-9011 Printed on post-consumer recycled paper MERRILL LYNCH GLOBAL UTILITY FUND, INC. Sector Diversification As a Percentage of Equities as of February 28, 1997 A pie chart depicting the following industries: Utilities--Electric 35.7% Telecommunications 42.2% Utilities--Gas 16.8% Utilities--Water 5.3% Geographical Diversification As a Percentage of Equities as of February 28, 1997 A pie chart depicting the following countries: United States 36.3% Europe 37.8% Americas (Ex-US) 15.1% Asia/Pacific Basin 10.8% DEAR SHAREHOLDER There was a relatively benign economic environment as 1996 drew to a close, a trend which continued into the first months of 1997. Inflation remains low, the pace of economic activity is moderate, and trends in corporate earnings generally still appear to be favorable, although the rate of increase in profits will probably be slower in 1997 than in previous years. On balance, US economic fundamentals appear to be the most positive they have been for many years. However, the dilemma facing investors is how long the economic expansion can continue at a steady, noninflationary pace. At this late stage of the current economic recovery, investor expectations can quickly change from positive to negative with the release of surprising economic results. This tendency was illustrated in the stock and bond market volatility sparked by Federal Reserve Board Chairman Alan Greenspan's Humphrey- Hawkins testimony before Congress in late February. Investors interpreted Chairman Greenspan's comments as indicative of a tightening in monetary policy, although stock and bond prices did stabilize subsequently. Continued steady, noninflationary economic growth would be very positive for the stock and bond markets in the new year, provided that it is not accompanied by successive preemptive moves by the Federal Reserve Board to raise interest rates to quell potential inflationary forces. On the international front, the US dollar continued its strong advance relative to the yen and the Deutschemark, raising concerns about the outlook for US trade. In early February, the leading industrialized nations expressed apparent agreement that it was time to seek a lower dollar and less volatility in the foreign exchange markets. It remains to be seen whether these stated intentions will be acted upon, or if the US dollar continues to rise relative to other major currencies. Portfolio Matters For the three months ended February 28, 1997, Merrill Lynch Global Utility Fund, Inc.'s Class A, Class B, Class C and Class D Shares provided total returns of +3.86%, +3.66%, +3.65% and +3.79%, respectively. The Fund's returns exceeded the +2.84% total return of Lipper Analytical Services, Inc.'s Utility Funds average for the February quarter, as well as the +3.60% total return for the unmanaged Financial Times/Standard & Poor's (FT/S&P)--Actuaries World Utility Index. (Results shown do not reflect sales charges and would be lower if sales charges were included. For complete performance information, including average annual total returns, see pages 4--6 of this report to shareholders.) There were three primary factors that affected the Fund's returns during the February quarter. First, Europe remained the second- largest region in the Fund's portfolio holdings. Italy, Spain, the United Kingdom and France were the four largest non-US markets in the Fund's portfolio as of February 28, 1997. The markets with the strongest performance in the region, according to the FT/S&P-- Actuaries World Utility Index, included the United Kingdom, Italy and Denmark. Italy, the United States and the United Kingdom, which accounted for approximately 49% of the Fund's net assets as of February 28, 1997, were three of the five best-performing utility markets for the quarter. Spain, which performed well during previous quarters, was weak in the February quarter. This weakness was attributed to the overhang of stock which resulted when the government reduced its stake in Telefonica de Espana S.A. with another public stock offering. Furthermore, concerns over rising interest rates and tariff changes negatively affected the Spanish electric utility sector. As the companies begin to address their handling of the tariff cut with cost-cutting that could offset part of the earnings impact, valuation levels may improve. The second factor that impacted the Fund's performance was our underweighted position in the Pacific Basin region. Japan, which is currently at a zero weighting in the Fund, again had negative returns. The Japanese government continued to pressure the electric utility sector to cut costs and lower prices, but companies continued to ward off this pressure and raised prices further. Fundamental concerns, as well as overall market weakness, resulted in the Japanese utility sector performing poorly. Of the nine individual Pacific Basin markets tracked by the FT/S&P--Actuaries World Utility Index, all had total returns less than that of the United States. The third factor impacting the Fund's returns for the February quarter was the strength in the US-based utility stocks. The strongest performance came from the telecommunications sector followed by the electric sector. The natural gas sector, which was a strong performer in 1996, showed signs of weakness in the February quarter. While there was no further news during the quarter to warrant such strong performance from the domestic telecommunications sector, the group's current yield remained relatively attractive compared to the current yield of the overall stock market. This factor, coupled with double-digit reported earnings gains for calendar year 1996 for several of the larger companies, resulted in investors bidding up the stock prices in the sector. On a relative basis, the Fund went to an underweighted position in the domestic telecommunications sector last year. Our position reflected our concern about the implementation of the 1996 Telecommunications Act and increasing competition, two factors that are still overhanging the group. Moreover, while the earnings trend was quite positive for several of the larger telephone companies, there were signs of slowing in the core business and rising expenditures during the fourth quarter of 1996. Valuation levels are at neither historical lows or highs for the telephone sector. The stock price performance of the group also continues to be influenced by the change in the yield on the 30-year US Treasury bond. As a result of these factors, the domestic telecommunications sector may remain volatile during the upcoming quarters. The domestic electric sector, in which the Fund has a relative overweighted position, had modestly negative price performance but positive results on a total return basis. Regulators around the country continued to review plans for opening up markets for competition and the handling of electric plants that may no longer be cost effective in a competitive environment. The Nuclear Regulatory Commission (NRC) showed signs of becoming tougher on companies in the enforcement of policy during the quarter. While it is too early to gauge the long-term implications of recent NRC actions, or if they are only company-specific, investors may be facing a more proactive regulatory body with the potential to influence stock price performance in the sector. The Fund was not invested in Unicom Corp., which came under attack from the NRC during the February quarter, nor do we hold Northeast Utilities Co. which also has come under NRC scrutiny. The domestic natural gas sector, where the Fund has an above-average weighting, was the weakest domestic utility sector in the February quarter. The weakness was attributed to profit-taking by investors following strong performance in previous quarters, warmer weather and pricing concerns. Stock price performance from this sector may remain somewhat flat until investors again focus on industry consolidation and valuation levels. Furthermore, as we move into summer, the focus will once again be on storage levels and demand expectations for the upcoming winter. Investment Activities During the three months ended February 28, 1997, we eliminated two holdings, reduced our positions in nine companies, and added one new position. The reductions were primarily made in our domestic electric utility holdings and one gas company. The two eliminations were Western Resources Co. and NCR Corp. which we received as a spin- off from AT&T Corp. The new position initiated during the quarter was KN Energy, Inc., a natural gas services provider primarily in the Rocky Mountain, mid-continent and Texas areas. The estimated annual earnings per share growth rate for the company is 15%, current valuation levels are attractive, and the company increases its dividend on a regular basis. In Conclusion We thank you for your investment in Merrill Lynch Global Utility Fund, Inc., and we look forward to discussing our investment strategy and outlook with you in upcoming shareholder reports. Sincerely, (Arthur Zeikel) Arthur Zeikel President (Walter D. Rogers) Walter D. Rogers Vice President and Portfolio Manager April 1, 1997 PERFORMANCE DATA About Fund Performance Investors are able to purchase shares of the Fund through the Merrill Lynch Select Pricing SM System, which offers four pricing alternatives: * Class A Shares incur a maximum initial sales charge (front-end load) of 4% and bear no ongoing distribution or account maintenance fees. Class A Shares are available only to eligible investors. * Class B Shares are subject to a maximum contingent deferred sales charge of 4% if redeemed during the first year, decreasing 1% each year thereafter to 0% after the fourth year. In addition, Class B Shares are subject to a distribution fee of 0.50% and an account maintenance fee of 0.25%. These shares automatically convert to Class D Shares after approximately 10 years. (There is no initial sales charge for automatic sales conversions.) * Class C Shares are subject to a distribution fee of 0.55% and an account maintenance fee of 0.25%. In addition, Class C Shares are subject to a 1% contingent deferred sales charge if redeemed within one year of purchase. * Class D Shares incur a maximum initial sales charge of 4% and an account maintenance fee of 0.25% (but no distribution fee). None of the past results shown should be considered a representation of future performance. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Dividends paid to each class of shares will vary because of the different levels of account maintenance, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders. Recent Performance Results*
12 Month 3 Month 2/28/97 11/30/96 2/29/96 % Change % Change Class A Shares $15.08 $15.09 $13.97 +11.32%(1) +3.05%(1) Class B Shares 15.04 15.05 13.92 +11.42(1) +3.06(1) Class C Shares 15.02 15.03 13.91 +11.36(1) +3.06(1) Class D Shares 15.09 15.10 13.98 +11.31(1) +3.05(1) Class A Shares--Total Return +15.46(2) +3.86(3) Class B Shares--Total Return +14.59(4) +3.66(5) Class C Shares--Total Return +14.53(6) +3.65(7) Class D Shares--Total Return +15.14(8) +3.79(9) *Investment results shown do not reflect sales charges; results shown would be lower if a sales charge was included. (1)Percent change includes reinvestment of $0.446 per share capital gains distributions. (2)Percent change includes reinvestment of $0.525 per share ordinary income dividends and $0.446 per share capital gains distributions. (3)Percent change includes reinvestment of $0.115 per share ordinary income dividends and $0.446 per share capital gains distributions. (4)Percent change includes reinvestment of $0.402 per share ordinary income dividends and $0.446 per share capital gains distributions. (5)Percent change includes reinvestment of $0.086 per share ordinary income dividends and $0.446 per share capital gains distributions. (6)Percent change includes reinvestment of $0.403 per share ordinary income dividends and $0.446 per share capital gains distributions. (7)Percent change includes reinvestment of $0.084 per share ordinary income dividends and $0.446 per share capital gains distributions. (8)Percent change includes reinvestment of $0.488 per share ordinary income dividends and $0.446 per share capital gains distributions. (9)Percent change includes reinvestment of $0.106 per share ordinary income dividends and $0.446 per share capital gains distributions.
Average Annual Total Return % Return Without % Return With Sales Charge Sales Charge** Class A Shares* Year Ended 12/31/96 +14.22% + 9.65% Five Years Ended 12/31/96 +11.46 +10.56 Inception (12/28/90) through 12/31/96 +12.00 +11.25 [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. % Return % Return Without CDSC With CDSC** Class B Shares* Year Ended 12/31/96 +13.34% + 9.34% Five Years Ended 12/31/96 +10.61 +10.61 Inception (12/28/90) through 12/31/96 +11.14 +11.14 [FN] *Maximum contingent deferred sales charge is 4% and is reduced to 0% after 4 years. **Assuming payment of applicable contingent deferred sales charge. % Return % Return Without CDSC With CDSC** Class C Shares* Year Ended 12/31/96 +13.21% +12.21% Inception (10/21/94) through 12/31/96 +14.35 +14.35 [FN] *Maximum contingent deferred sales charge is 1% and is reduced to 0% after 1 year. **Assuming payment of applicable contingent deferred sales charge. % Return Without % Return With Sales Charge Sales Charge** Class D Shares* Year Ended 12/31/96 +13.66% + 9.11% Inception (10/21/94) through 12/31/96 +14.99 +12.88 [FN] *Maximum sales charge is 4%. **Assuming maximum sales charge. Performance Summary-- Class A Shares
Net Asset Value Capital Gains Period Covered Beginning Ending Distributed Dividends Paid* % Change** 12/28/90--12/31/90 $10.00 $10.01 -- -- + 0.10% 1991 10.01 10.93 -- $0.508 +14.74 1992 10.93 11.40 $0.012 0.469 + 8.97 1993 11.40 13.67 0.027 0.424 +24.13 1994 13.67 11.83 -- 0.480 -10.00 1995 11.83 13.86 0.245 0.483 +23.74 1996 13.86 14.80 0.446 0.525 +14.22 1/1/97--2/28/97 14.80 15.08 -- -- + 1.89 ------ ------ Total $0.730 Total $2.889 Cumulative total return as of 2/28/97:+101.36%** *Figures may include short-term capital gains distributions. **Figures assume reinvestment of all dividends and capital gains distributions at net asset value on the ex-dividend date, and do not include sales charge; results would be lower if sales charge was included.
PERFORMANCE DATA (concluded) Performance Summary-- Class B Shares
Net Asset Value Capital Gains Period Covered Beginning Ending Distributed Dividends Paid* % Change** 12/28/90--12/31/90 $10.00 $10.01 -- -- + 0.10% 1991 10.01 10.92 -- $0.435 +13.84 1992 10.92 11.38 $0.012 0.391 + 8.12 1993 11.38 13.63 0.027 0.337 +23.17 1994 13.63 11.81 -- 0.379 -10.62 1995 11.81 13.83 0.245 0.380 +22.73 1996 13.83 14.78 0.446 0.402 +13.34 1/1/97--2/28/97 14.78 15.04 -- -- + 1.76 ------ ------ Total $0.730 Total $2.324 Cumulative total return as of 2/28/97:+91.99%** *Figures may include short-term capital gains distributions. **Figures assume reinvestment of all dividends and capital gains distributions at net asset value on the ex-dividend date, and do not reflect deduction of any sales charge; results would be lower if sales charge was deducted.
Performance Summary-- Class C Shares
Net Asset Value Capital Gains Period Covered Beginning Ending Distributed Dividends Paid* % Change** 10/21/94--12/31/94 $12.34 $11.81 -- $0.117 - 3.35% 1995 11.81 13.82 $0.245 0.383 +22.67 1996 13.82 14.75 0.446 0.403 +13.21 1/1/97--2/28/97 14.75 15.02 -- -- + 1.83 ------ ------ Total $0.691 Total $0.903 Cumulative total return as of 2/28/97:+36.68%** *Figures may include short-term capital gains distributions. **Figures assume reinvestment of all dividends and capital gains distributions at net asset value on the ex-dividend date, and do not reflect deduction of any sales charge; results would be lower if sales charge was deducted.
Performance Summary-- Class D Shares
Net Asset Value Capital Gains Period Covered Beginning Ending Distributed Dividends Paid* % Change** 10/21/94--12/31/94 $12.37 $11.84 -- $0.124 - 3.29% 1995 11.84 13.90 $0.245 0.445 +23.62 1996 13.90 14.81 0.446 0.488 +13.66 1/1/97--2/28/97 14.81 15.09 -- -- + 1.89 ------ ------ Total $0.691 Total $1.057 Cumulative total return as of 2/28/97:+38.45%** *Figures may include short-term capital gains distributions. **Figures assume reinvestment of all dividends and capital gains distributions at net asset value on the ex-dividend date, and do not include sales charge; results would be lower if sales charge was included.
SCHEDULE OF INVESTMENTS (in US dollars)
Shares Percent of COUNTRY Industries Held Common Stocks & Warrants Cost Value Net Assets Argentina Telecommunications 100,000 Telecom Argentina STET S.A. (ADR)(b) $ 3,770,294 $ 4,812,500 1.3% 200,000 Telefonica de Argentina S.A. (ADR)(b) 4,140,594 6,325,000 1.7 ------------ ------------ ------ 7,910,888 11,137,500 3.0 Utilities--Electric 6,600 Central Costanera S.A. (ADR)(b) 158,400 217,800 0.1 Total Common Stocks in Argentina 8,069,288 11,355,300 3.1 Australia Utilities--Gas 2,000,000 Australian Gas & Light Co., Ltd. 5,280,752 11,436,766 3.1 Total Common Stocks in Australia 5,280,752 11,436,766 3.1 Austria Utilities--Gas 41,820 Energie-Versorgung Niederoesterreich AG (EVN) 3,050,015 6,156,315 1.6 Total Common Stocks in Austria 3,050,015 6,156,315 1.6 Brazil Telecommunications 45,000 Telecomunicacoes Brasileiras S.A.--Telebras (ADR)(b) 2,176,897 4,365,000 1.2 Total Common Stocks in Brazil 2,176,897 4,365,000 1.2 Canada Telecommunications 140,000 BC Telecom, Inc. 2,593,297 3,063,525 0.8 Utilities--Electric 369,100 Nova Scotia Power Co. 3,476,309 3,822,281 1.0 Utilities--Gas 200,000 Transcanada Pipeline Co. Ltd. (ADR) (b) 3,147,485 3,675,000 1.0 Total Common Stocks in Canada 9,217,091 10,560,806 2.8 Chile Telecommunications 216,750 Compania de Telecomunicaciones de Chile S.A. (ADR)(b) 3,711,460 6,339,938 1.7 Utilities--Electric 65,000 Chilgener S.A. (ADR)(b) 1,495,000 1,641,250 0.5 156,000 Distribuidora Chilectra Metropolitana S.A. (ADR)(b) 4,249,463 10,140,000 2.7 ------------ ------------ ------ 5,744,463 11,781,250 3.2 Total Common Stocks in Chile 9,455,923 18,121,188 4.9 Denmark Telecommunications 160,000 Tele Danmark A/S (ADR)(b) 3,764,160 4,240,000 1.1 Total Common Stocks in Denmark 3,764,160 4,240,000 1.1 France Utilities--Water 89,715 Generale des Eaux S.A. 9,668,083 12,484,688 3.4 40,000 Lyonnaise des Eaux S.A. 3,989,365 4,085,286 1.1 Total Common Stocks in France 13,657,448 16,569,974 4.5 Germany Telecommunications 24,300 Deutsche Telekom AG 462,162 467,584 0.1 Utilities--Electric 140,000 Veba AG 4,568,890 8,007,105 2.2 Total Common Stocks in Germany 5,031,052 8,474,689 2.3
SCHEDULE OF INVESTMENTS (continued) (in US dollars)
Shares Percent of COUNTRY Industries Held Common Stocks & Warrants Cost Value Net Assets Hong Kong Utilities--Gas 1,200,000 The Hong Kong and China Gas Co. Ltd. $ 1,627,410 $ 2,278,128 0.6% 100,000 The Hong Kong and China Gas Co. Ltd. (Warrants)(a) 0 49,721 0.0 Total Common Stocks & Warrants in Hong Kong 1,627,410 2,327,849 0.6 Indonesia Telecommunications 5,500 PT Indonesian Satellite Corp. (Indosat) (ADR)(b) 176,275 158,125 0.0 29,600 PT Telekomunikasi Indonesia (Persero) (ADR)(b) 532,800 1,017,500 0.3 Total Common Stocks in Indonesia 709,075 1,175,625 0.3 Italy Telecommunications 2,891,700 Seat S.p.A.++ 804,760 669,070 0.2 2,891,700 Societa Finanziara Telefonica S.p.A. (STET) 5,447,174 10,113,053 2.7 3,900,000 Telecom Italia Mobile S.p.A. 2,605,057 10,212,203 2.8 3,700,000 Telecom Italia S.p.A 3,497,148 8,692,282 2.3 ------------ ------------ ------ 12,354,139 29,686,608 8.0 Utilities--Gas 1,786,300 Italgas Torino S.p.A. 5,169,953 6,368,733 1.7 Total Common Stocks in Italy 17,524,092 36,055,341 9.7 Korea Utilities--Electric 114,200 Korea Electric Power Corp. (KEPCO) (ADR)(b) 2,298,275 2,055,600 0.6 Total Common Stocks in Korea 2,298,275 2,055,600 0.6 Malaysia Telecommunications 860,000 Telekom Malaysia BHD 6,389,867 6,963,142 1.9 Total Common Stocks in Malaysia 6,389,867 6,963,142 1.9 Mexico Telecommunications 105,000 Telefonos de Mexico, S.A. de C.V. (ADR)(b) 5,594,445 4,081,875 1.1 Total Common Stocks in Mexico 5,594,445 4,081,875 1.1 New Telecommunications 89,000 Telecom Corporation of New Zealand Zealand Ltd. (ADR)(b) 3,564,658 6,430,250 1.7 Total Common Stocks in New Zealand 3,564,658 6,430,250 1.7 Peru Telecommunications 195,000 Telefonica del Peru S.A. (ADR)(b) 3,997,500 4,290,000 1.2 Total Common Stocks in Peru 3,997,500 4,290,000 1.2 Philippines Telecommunications 94,000 Philippine Long Distance Telephone Co. (ADR)(b) 4,077,062 5,452,000 1.5 Utilities--Electric 74,100 Manila Electric Co. (MERALCO) 'B' 497,246 588,856 0.1 Total Common Stocks in the Philippines 4,574,308 6,040,856 1.6 Portugal Telecommunications 205,740 Portugal Telecom, S.A. (ADR)(b) 4,576,844 7,175,182 1.9 Total Common Stocks in Portugal 4,576,844 7,175,182 1.9 Spain Telecommunications 537,300 Telefonica de Espana S.A. 6,164,064 12,373,273 3.3 Utilities--Electric 129,800 Empresa Nacional de Electricidad, S.A. (ADR)(b) 4,566,202 7,966,475 2.1 92,000 HidroElectrica Del Cantabrico, S.A. 3,107,921 3,139,428 0.9 808,500 Iberdrola I S.A. 4,998,321 8,829,745 2.4 ------------ ------------ ------ 12,672,444 19,935,648 5.4 Total Common Stocks in Spain 18,836,508 32,308,921 8.7 Switzerland Utilities-- Electric 4,300 Elektrowatt AG 1,687,158 1,547,790 0.4 Total Common Stocks in Switzerland 1,687,158 1,547,790 0.4 Thailand Telecommunications 15,000 TelecomAsia Corporation Public Co., Ltd. PLC (ADR)(b) 328,050 255,000 0.1 Utilities--Electric 332,000 Electricity Generating Company of Thailand (EGCOMP) 296,433 839,938 0.2 Total Common Stocks in Thailand 624,483 1,094,938 0.3 United Telecommunications 671,000 British Telecommunications PLC 4,688,465 4,646,683 1.2 Kingdom 180,000 Vodafone Group PLC (ADR)(b) 5,355,931 8,550,000 2.3 ------------ ------------ ------ 10,044,396 13,196,683 3.5 Utilities-- Electric 208,000 National Power PLC 1,723,671 1,672,289 0.5 445,000 PowerGen PLC 3,253,482 4,504,757 1.2 ------------ ------------ ------ 4,977,153 6,177,046 1.7 Total Common Stocks in the United Kingdom 15,021,549 19,373,729 5.2 United Telecommunications 31,000 AT&T Corp. 1,196,806 1,236,125 0.3 States 70,000 Ameritech Corp. 2,996,450 4,462,500 1.2 91,800 BellSouth Corp. 2,702,773 4,303,125 1.2 108,000 Frontier Corp. 2,193,480 2,389,500 0.6 85,000 GTE Corp. 3,145,450 3,973,750 1.1 10,046 Lucent Technologies, Inc. 493,515 541,228 0.1 62,000 NYNEX Corp. 2,819,654 3,193,000 0.9 69,900 SBC Communications, Inc. 2,939,711 4,019,250 1.1 68,000 U S West Communications Group 1,895,186 2,448,000 0.7 ------------ ------------ ------ 20,383,025 26,566,478 7.2 Utilities--Electric 156,000 Allegheny Power System, Inc. 4,213,210 4,777,500 1.3 87,200 Boston Edison Co. 2,722,264 2,332,600 0.6 166,962 CINergy Corp. 4,045,124 5,760,189 1.6 84,200 Consolidated Edison Co. of New York 2,991,744 2,599,675 0.7 118,900 DTE Energy Co. 4,092,463 3,596,725 1.0 95,250 Dominion Resources, Inc. 3,965,452 3,833,812 1.0 85,000 Duke Power Co. 3,180,276 3,761,250 1.0 283,000 Edison International 6,379,546 6,084,500 1.6 188,300 GPU, Inc. 5,864,594 6,590,500 1.8 231,200 Houston Industries, Inc. 5,659,198 5,375,400 1.4 184,800 NIPSCO Industries, Inc. 5,394,297 7,368,900 2.0 159,000 New York State Electric & Gas Corp. 5,705,686 3,696,750 1.0 140,500 PECO Energy Co. 4,344,731 3,161,250 0.9 183,000 PacifiCorp 3,657,980 3,774,375 1.0 124,000 Public Service Co. of Colorado 3,798,642 4,836,000 1.3 91,200 Southern Co. 2,022,770 1,983,600 0.5 ------------ ------------ ------ 68,037,977 69,533,026 18.7
SCHEDULE OF INVESTMENTS (concluded) (in US dollars)
Shares Percent of COUNTRY Industries Held Common Stocks & Warrants Cost Value Net Assets United Utilities--Gas 95,100 AGL Resources Inc. $ 1,781,042 $ 1,854,450 0.5% States 130,000 The Brooklyn Union Gas Co. 3,371,550 3,705,000 1.0 (concluded) 185,500 The Coastal Corp. 4,952,363 8,440,250 2.3 4,500 KN Energy, Inc. 175,770 177,750 0.0 236,000 Questar Corp. 6,554,436 8,555,000 2.3 127,300 Sonat, Inc. 3,309,934 5,855,800 1.6 ------------ ------------ ------ 20,145,095 28,588,250 7.7 Utilities--Water 86,000 American Water Works Co., Inc. 1,617,875 2,010,250 0.5 Total Common Stocks in the United States 110,183,972 126,698,004 34.1 Total Investments in Common Stocks & Warrants 256,912,770 348,899,140 93.9 Face Amount Fixed-Income Securities Australia Telecommu- US$ 7,960,000 Telstra Corp., Ltd., 6.50% due nications 7/31/2003 8,115,578 7,812,820 2.1 Total Fixed-Income Securities in Australia 8,115,578 7,812,820 2.1 Korea Telecommu- 2,500,000 Korea Telecom, 7.40% due 12/01/1999 2,499,500 2,540,925 0.7 nications Total Fixed-Income Securities in Korea 2,499,500 2,540,925 0.7 United Telecommu- 4,000,000 Rochester Telephone Corp., 9.25% due States nications 6/01/2000 4,111,200 4,285,200 1.1 Utilities-- 4,000,000 Consumer Power Co., 8.875% due Electric 11/15/1999 4,190,000 4,152,680 1.1 Total Fixed-Income Securities in the United States 8,301,200 8,437,880 2.2 Total Investments in Fixed-Income Securities 18,916,278 18,791,625 5.0 Short-Term Securities US Government 3,990,000 Federal Home Loan Mortgage Corp., 5.30% Agency Obligations* due 3/03/1997 3,988,825 3,988,825 1.1 Total Investments in Short-Term Securities 3,988,825 3,988,825 1.1 Total Investments $279,817,873 371,679,590 100.0 ============ Liabilities in Excess of Other Assets (8,435) (0.0) ------------ ------ Net Assets $371,671,155 100.0% ============ ====== Net Asset Class A--Based on net assets of $39,309,152 and Value: 2,606,079 shares outstanding $ 15.08 ============ Class B--Based on net assets of $323,562,893 and 21,508,846 shares outstanding $ 15.04 ============ Class C--Based on net assets of $3,671,444 and 244,461 shares outstanding $ 15.02 ============ Class D--Based on net assets of $5,127,666 and 339,700 shares outstanding $ 15.09 ============ *Certain US Government Agency Obligations are traded on a discount basis; the interest rate shown is the discount rate paid at the time of purchase by the Fund. (a)Warrants entitle the Fund to purchase a predetermined number of shares of common stock. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date. (b)American Depositary Receipts (ADR). ++Acquired through a spin-off of Societa Finanziara Telefonica S.p.A. (STET) in the February quarter.
PORTFOLIO INFORMATION Worldwide Investments as of 2/28/97 Ten Largest Holdings Percent of (Equity Investments) Net Assets Generale des Eaux S.A. 3.4% Telefonica de Espana S.A. 3.3 Australian Gas & Light Co., Ltd. 3.1 Telecom Italia Mobile S.p.A. 2.8 Distribuidora Chilectra Metropolitana S.A. (ADR) 2.7 Societa Finanziara Telefonica S.p.A. (STET) 2.7 Iberdrola I S.A. 2.4 Telecom Italia S.p.A 2.3 Questar Corp. 2.3 Vodafone Group PLC (ADR) 2.3 Addition (Equity Investments) KN Energy, Inc. Deletions (Equity Investments) NCR Corp.++ Western Resources Co. [FN] ++Acquired through a spin-off of AT&T Corp. in the February quarter. -----END PRIVACY-ENHANCED MESSAGE-----